RGC RESOURCES, INC. (NASDAQ:RGCO) Files An 8-K Entry into a Material Definitive Agreement
ITEM 1.01.
ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
On March 28, 2019, Roanoke Gas Company (“Roanoke”), the utility subsidiary of RGC Resources, Inc. (“Resources”) entered into unsecured notes (“Notes”) with Highmark, Inc., Prudential Arizona Reinsurance Term Company and The Prudential Insurance Company of America under a Note Commitment with Prudential Investment Management (“Prudential”) on January 2, 2019. These Notes in the aggregate principal amount of $10,000,000 bear an interest rate of 4.41% per annum with interest payable semi-annually in March and September of each year, commencing September 28, 2019. The principal balances of the Notes are due on March 28, 2031. The proceeds from these notes will be used to refinance a portion of Roanoke’s existing debt under its variable rate line-of-credit.
The Notes were issued under the provisions of the Private Shelf Facility Agreement (“Agreement”) Roanoke entered into with Prudential effective September 30, 2015 for a three-year period and subsequently extended until October 2, 2020.
In addition and in connection with the above Notes, also on March 28, 2019, Resources executed an Unconditional Guaranty in favor of Prudential and the affiliates participating in the unsecured notes unconditionally guaranteeing timely payment and performance of the obligations of Roanoke to Prudential.
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ITEM 2.03 |
CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT. |
The information required by this Item 2.03 is set forth in Item 1.01 above in respect of the Notes, which is incorporated herein by reference.
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ITEM 9.01. |
FINANCIAL STATEMENTS AND EXHIBITS. |
(d) Exhibits.
RGC RESOURCES INC Exhibit
EX-10.1 2 exhibit101r-1note.htm EXHIBIT 10.1 Exhibit Exhibit 10.1ROANOKE GAS COMPANYNo. R-1 PPN: 769858 E@6 ORIGINAL PRINCIPAL AMOUNT: $5,…
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About RGC RESOURCES, INC. (NASDAQ:RGCO)
RGC Resources, Inc. (Resources) is an energy services company. The Company is engaged in the regulated sale and distribution of natural gas to residential, commercial and industrial customers in Roanoke, Virginia, and the surrounding localities, through its Roanoke Gas Company (Roanoke Gas) subsidiary. Roanoke Gas also provides certain non-regulated services. It maintains an integrated natural gas distribution system to deliver natural gas purchased from suppliers to residential, commercial and industrial users in its service territory. As of September 30, 2016, Resources had approximately 1,132 miles of transmission and distribution pipeline. As of September 30, 2016, Roanoke Gas owned and operated eight metering stations. It also owns a liquefied natural gas storage facility located in Botetourt County that has the capacity to store up to 220,000 dekatherm (DTH) of natural gas. The Company’s subsidiaries also include Diversified Energy Company and RGC Midstream, LLC.
